The concept of the gray market involves conducting market operations outside the formal authorized setting. This concept is very common among the market participants. Sometimes exchange or trade of stock takes place prior to the stocks being listed in any authorized market, based on speculation. Such a market stands as a gray market.  Some of … Read more

What is a Gray Market ?


Introduction Gray market is a market economy concept. It can be defined as a marketplace where the transaction of goods (stocks and commodities) take place through unauthorized channels, which may not be officially recognized. In simpler terms, any market place that is not officially recognized, may or may not be legal, is a gray market.  … Read more

Limitations of Limited Liability Company (LLC)


Despite all the above characteristics which make Limited Liability Company (LLC) a favorable structure, there are some shortcomings (Limitations) of Limited Liability Company structure. Some of such disadvantages are: Growth Opportunities LLC  structures have limited growth opportunities. LLC have capital structure restrictions and in case of any growth options, LLC cannot easily change its capital … Read more

Limited Liability Company (LLC): Meaning and Features


Introduction Establishment of a corporation can take many forms. Limited liability company (LLC) is one such business structure. LLC is a business formation where the personal assets of owner/s are protected from the business liability. As the name suggests, owners have limited their business liability in terms of any losses. It is a hybrid legal … Read more

Reasons for Credit Suisse Collapse

Credit Suisse failure

Introduction Credit Suisse is one of the renowned multinational investment bank and financial services companies founded in 1856 in Switzerland. With its headquarter in Zurich, Switzerland, Credit Suisse provides a wide range of  services such as banking, asset management and financial services across the continent. Established as a Swiss Credit Institutions, the financial institution has … Read more

Economic Forecasting Techniques


Introduction Economic forecasting simply means making informed predictions about future economic conditions, opportunities, trends and developments. This includes assessing and analyzing the historical evidence and current economic scenarios to make projections about macro variables of the economy. Macro-economic variables include GDP growth, inflation rates, unemployment rates, interest rates etc. Elliott, G. and Tinnermann, A. describe … Read more

Major areas of Finance

Finance Major Areas

Introduction Finance deals with management of money, assets and resources to optimize wealth, mitigate risks and achieve financial goals. Finance plays an important role in defining and shaping the economic landscape of an individual, an organization and an entire nation. It encompasses a diverse range of scope with distinct focus and significance. Finance incorporates personal … Read more

What is Herd Behavior ? Meaning and Characteristics


Introduction Herd behavior is a very common phenomenon which we can observe in the financial market, fashion trends and during crisis situations. This behavior reflects the complexities of human behavior and indicates how an individual navigates during collective influence. Herd behavior refers to the tendency of individuals to follow and imitate the decisions, actions and … Read more

Difference between Data Mining and Data Analytics

Difference Between Data Mining vs Data Analytics

Introduction Data mining and Data Analytics has become an integral part of modern economy. Advancement in technology has revolutionized nearly every aspect of human life. We live in the most fascinating era of technology where we are experiencing rapid technological advancement, global connectivity, ubiquitous computing and mobile revolution, automation and artificial intelligence and disruptive innovations … Read more

Speculative Assets : Definition and Characteristics


What do you mean by Speculative Assets ? Speculative assets are financial investments which have an expectation of generating profits from price appreciation. Investors invest in such assets believing that the asset’s price will increase in future over a specific period of time, letting investors sell the asset at higher price, realizing profit. There are … Read more